Digital media captures nearly half of India’s Rs 1 lakh crore ad spend: Report

India’s advertising industry has crossed the ₹1 lakh crore milestone, with digital platforms now commanding an estimated 45-46% of total ad spend in the last fiscal, according to Crisil Intelligence. This marks a sharp jump from the 24% share in fiscal 2020, underscoring a decisive shift in how brands connect with consumers.

The rise of digital has coincided with a drop in traditional media’s share, from nearly 65% in fiscal 2020 to about 46-47% last year. Television and print have borne the brunt of the change. TV broadcasters are losing advertising revenue as audiences shift to over-the-top (OTT) platforms, while distribution networks face subscriber erosion, the direct-to-home segment alone lost over 10 million subscribers between December 2020 and 2024. Print circulation has stagnated, readership is down by about 500 basis points since 2020, and advertisers are increasingly diverting budgets online.

Sectors such as fast-moving consumer goods (FMCG), automobiles and e-commerce are leading the digital push. FMCG companies now spend 55-60% of their ad budgets on digital channels, up from around 30% in 2020. Automakers have increased their digital allocation to 35-40%, from 15-20% five years ago, while e-commerce players devote up to 60% of ad spends online.

Within digital advertising, social media has surged from a 31-33% share in 2020 to 40-45% last fiscal, fuelled by creator-led content and short-form videos. YouTube’s share has also doubled to 20-22%, driven by its wide reach, accessibility across devices and ad-supported free content. Meanwhile, the share of search ads has dipped by 5-6 percentage points, signalling a more diversified digital ecosystem.

The shift is underpinned by India’s expanding digital base. Smartphone users rose from 500 million in 2019 to 700 million in 2024, while mobile data remains among the cheapest in the world at just $0.16 per GB, compared with a global average of $2.50. Average daily screen time now exceeds five hours, with OTT and social media accounting for about 60% of that.

According to Crisil Intelligence, the trend is irreversible. Digital platforms offer sharper targeting, micro-market strategies and better cost efficiency, while creator-led formats deliver higher engagement and relatability. Even traditional players are ramping up digitalisation to stay relevant.

However, a significant share of India’s digital ad spend flows to foreign-owned platforms like Meta and Google. Crisil suggests that developing and supporting domestic digital platforms could help retain more value within the country and strengthen India’s influence over its digital future.